Bitcoins and the stock market have become key attractions for investors and traders. As a trader, it’s your responsibility to ensure that your trading methods are safe and the wallets are secured. Over the years, with the rise in crypto and bitcoin trading volume, more and more cybercrimes have been reported. According to the Federal Trade Commission (FTC) Consumer Sentinel, around 7,000 people were scammed, leading to a loss of $80 million between October 2020 and March 31, 2021. These hackers target not only individual traders but also businesses and enterprises dealing with bitcoin. That’s why unless you are aware of the security tips, it won’t be possible for you to trade in a better way and prevent yourself from getting stuck in fraud or being a target of cybercrime.
In this article, we will give you some tips about maintaining high security and preventing losses or frauds while dealing with bitcoin. With these tips, you can quickly identify a threat and take measures to keep your wallet and assets safe.
Never store the private keys online
Like you have pins for your cards and passwords for your mail, you will have keys to protect your bitcoin wallets. While the public key can be shared, it’s just like your account number, but when we talk about a private key, it is like your ATM pin, which should only be you and should not be shared with anyone. It is confidential and almost acts like a password. Now, these keys are strings made from alphabets, numbers, and special characters. Therefore, to remember it, you will write it down somewhere. If you want to protect it from hackers, make sure to store it somewhere other than any online medium like the notepad of your PC.
Always check the exchange platform
Many traders usually do not verify whether the bitcoin exchange they have chosen is secured and genuine or not. Reports have already proven that a lot of scams and fraudulent exchanges are in use to date. And they have embezzled a lot of money which is unrecoverable as the trades don’t have any legal consent. Therefore, always go for trustworthy exchanges, like the btc profit.
Make sure to use a secured hardware
You will trade from your phone, iPad, laptop, or PC. If any of these devices are infected with malware or spyware, the hacker will automatically enter your wallet and the trades you have made. Sometimes, hackers can have full control over your system without your knowledge, so make sure that you open your wallet or the trades from a highly secured device. Also, do not use a public network because it is always vulnerable to cyber-attacks.
Maintain multiple wallets
There is an adage, never put all your eggs in one basket; a wise trader never puts all the bitcoin in a single wallet. This is because if, by chance, the wallet is hacked, you will lose all coins. Therefore, the most feasible solution will be to divide all your assets into equal portions and keep them in multiple wallets. Also, for additional security, do not use the wallets of exchange or any other online wallet as they are vulnerable and easy to attack. That’s why I always go for multiple hardware wallets for maximum security, if not 100%.
Do not make your identity visible
As a trader, your identification will be the private key, your wallet’s IP address, and other such confidential information. If you somehow make them public or disclose the information to another trader, there will be high chances that your bitcoins will be hacked or stolen. Therefore, keep the confidential information and your identity safe and hidden. Crypto is all about anonymity, and you need to trade in that manner only.
Always trust the 2FA process
Two Factor Authentication is a good way to protect your wallet against threats. There are many third-party authenticators like the Google authenticator, which you need to install on your device. After that, you need to scan the given QR code for linking the exchange with the authenticator. Once done, you will have to give a six-digit passcode every time you enter your exchange. This passcode shown on the authenticator will get refreshed after a set amount of time, like one minute, thirty seconds, and so on.
The above discussion would have given you a complete insight into the safety measures you need to adopt to ensure safe trading. You can implement any of these ideas or more if you want to completely secure your information and get rid of the paranoia.